The Chinese government in Beijing might be subtly endorsing the idea of legalizing a form of retail crypto trading in Hong Kong. According to Bloomberg, officials from China’s Liaison Office have been frequent guests at crypto gatherings in Hong Kong, and the tone of their visits and follow-up calls with certain projects has been friendly. As Hong Kong prepares for a consultation process that could eventually legalize retail crypto trading, the Chinese government’s endorsement could be a major boost for the industry. If the consultation process is successful, it could open up a new market for crypto trading in the region.
Hong Kong is pushing to become a crypto hub, using its separate legal system and markets to be a testing ground. According to Nick Chan, a National People’s Congress member and a crypto lawyer, as long as it does not threaten financial stability in China, Hong Kong is free to explore its own pursuit under ‘One Country, Two Systems’. This could be seen as an endorsement of Hong Kong’s efforts to become a crypto hub, and could be a sign of the Special Administrative Region of China’s commitment to open markets in the 21st century. This could be a great opportunity for investors and entrepreneurs to explore the potential of blockchain technology and cryptocurrency in Hong Kong.
The Securities and Futures Commission (SFC) of Hong Kong has taken its first step towards allowing retail crypto trading by launching a consultation process for Virtual Asset Service Providers (VASPs). The proposed requirements include a due diligence process on tokens prior to listing, allowing only pre-approved tokens to be traded, and setting up a risk profile for clients to ensure their exposure is “reasonable.” This move is seen as a positive step towards the regulation of the cryptocurrency market in Hong Kong and could open up the door to more retail crypto trading in the future.
The Securities and Futures Commission (SFC) of Hong Kong has just concluded a multi-year consultation process that will allow exchanges to serve professional investors with a net worth of over $1 million from June 1. However, the SFC has yet to finish its consultation process on allowing retail investors access. This consultation process is part of the SFC’s efforts to ensure that the Hong Kong financial markets remain competitive and attractive to investors. The SFC is committed to providing a safe and secure environment for investors, and the consultation process is an important step in this direction. The SFC will continue to monitor the situation and provide updates on the consultation process as it progresses.
